[ATimes]A drawback in purchases – or a fire-sale – of US Treasuries could devastate the global economy if China presses the red button.| First a warning. This ##%$ page now has an Arby's audio advertisement you can't turn off and screws up scrolling on Asia Times now ruined web experience. Second, it looks like China is intentionally trying to panic the world's stock markets every Monday and then every other day in the week. One hopes the US farmers - most who haven't planted yet don't plant Soy Beans so China can experience food shortages again. More gasohol as nobody can eat it? |
Of all the economic threats exchanged recently, the most frightful came from a man most readers might have to google: Cui Tiankai, China’s ambassador to the US. That is saying a lot, considering the tariff arms race being waged between Washington and Beijing.
First, Donald Trump threw US$50 billion Xi Jinping’s way. When China matched that amount, President Donald Trump threatened to toss another $100 billion of levies into the fire. But that is mere noise compared to Cui’s suggestion that Beijing, America’s main banker, might consider scaling back on US Treasuries purchases.
Tariffs will hurt, certainly. The biggest trade powers engaged in a protectionist tit-for-tat will end badly for the entire global economy. But Cui’s not-so-veiled threat is something bigger.
“Now is the time,” the state-run People’s Daily argued in an editorial on the topic, “for China to use its financial weapon to teach the US a lesson.”